Parliament has finally dropped the payment of Over the Top Services (OTT) tax after passing the Excise Duty (Amendment) Bill 2021 which now introduces a 12% tax on internet data.
The tax measure is contained in the Excise duty amendment bill 2021 that among other things has introduced a 100 shillings’ tax on every litre of fuel.
The new tax proposals also repealed the daily 200 shillings Over the Top (OTT).
However, the 12 percent tax will be exempted when purchasing data for medical and education services but Kampala Central MP Muhammad Nsereko rejected the internet tax saying it does not help for a country whose internet costs are already high.
He says that the Government cannot tell when one is buying data for leisure or educational services.
Jonathan Odur the Erute South MP also asked the Government to revise the tax on the internet saying it will hurt the economy which is trying to go digital.
Minister of State for Planning David Bahati however countered this by saying that MPs have been asking them to stop borrowing, and that is why they have decided to bring in new taxes.
